Finance News

Income tax proof is mandatory for investments above five lakh rupees

In order to invest more than five lakh rupees in the savings account, proof of submission of income tax return for the last year must be shown. At the same time, it is mandatory to file returns even for opening an account in Post Office Savings Bank.

Bangladesh Bank has issued a notification in this regard to the chief executives of all banks in the country on Monday. It has been said that commercial banks have to take necessary measures to properly comply with section 48 of the Finance Act 2022 in the case of investments of more than five lakh rupees as savings certificates and post office savings banks. Apart from this, even if the bank deposit exceeds 10 lakhs, the return deposit certificate must be given to the bank.

Bangladesh Bank has given this instruction to the banks in view of a letter sent by the National Board of Revenue (NBR). While there was a rule of submission of Taxpayer Identification Number (TIN) while purchasing savings certificates, the new notification will no longer require only TIN. Now you will need Income Tax Return Filing Acknowledgment Letter or System Generator Certificate containing details of taxpayer’s Tax Identification Number, Name and the financial year for which the return is filed or Certificate issued by Excise Commissioner. However, in case of institutional investment, TIN has to be submitted instead of proof of return filing.

As per the instructions, from now on if a person wants to open a postal savings account or investment of more than five lakh rupees in savings certificate, he will have to show proof of deposit of income tax return of the last year. That means the government thinks your income is within the taxable income limit. Similarly, if you have a bank account, in any case, if the credit balance exceeds Tk 10 lakh, the bank will have to provide the return deposit certificate. The same will happen in the case of applying for a bank loan of more than five lakh rupees or taking a credit card. That is, you cannot do any of this without filing an income tax return.

In order to increase income tax collection, the budget of the current fiscal year 2022-23 has imposed the obligation to submit income tax returns in several cases. In many of these cases earlier only submission of Tax Identification Number (TIN certificate) was required. It has been informed that proof of return submission will be given from now.